International
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Scania opens €1.9bn manufacturing hub in China

15/10/2025, 16:10
Scania opens €1.9bn manufacturing hub in China

Scania has officially opened its third global industrial hub in Rugao, Jiangsu Province, marking a milestone investment of approximately €1.9 billion—one of the largest in the company’s history.

The 800,000-square-meter facility has licensed production capacity for 50,000 vehicles annually and will serve the Chinese market alongside select export markets across Asia and beyond. Notably, Scania becomes the first Western truck manufacturer to secure full production approval for a wholly owned manufacturing plant in China.

Sustainability stands at the core of the Rugao operation. The plant will run almost entirely on renewable energy, utilizing locally produced biogas and certified green electricity throughout its operations.

“Sustainability is embedded in every aspect of our new plant in Rugao, from energy supply to waste management,” explains Rutgher de Vries, head of Scania Industrial Operations Asia. “This isn’t just about producing trucks—it’s about establishing a new benchmark for efficient and sustainable industrial operations.”

While Scania has maintained a presence in China for over six decades, the new facility represents a strategic shift closer to its customer base in the world’s largest truck market. The proximity will enable significantly reduced lead times for customers across the region.

“Our establishment in Rugao transcends traditional manufacturing,” says Christian Levin, President and CEO of Scania and Traton Group. “It integrates us into China’s dynamic innovation landscape and will accelerate Scania’s own development trajectory.”

#china #scania
Nils Lund